ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS

The operating results and gain on disposition of real estate for properties sold and held for sale are reflected in the consolidated statements of comprehensive income as discontinued operations. Prior period financial statements have been adjusted for discontinued operations. The proceeds from dispositions of operating properties with no continuing involvement were $491.8 million, $228.5 million and $365.2 million for the years ended December 31, 2013, 2012 and 2011, respectively.

A summary of the results of operations for the properties held for sale and disposed of through the respective disposition dates is as follows (in thousands):



	For the Year Ended
	December 31, 2013			December 31, 2012			December 31, 2011
Revenues	$	113,586		$	137,476		$	191,723
Operating expenses	(41,875		)	(48,956		)	(73,462		)
Interest and other income	213			580			577
Interest expense	(15,903		)	(19,783		)	(29,058		)
Depreciation and amortization	(29,566		)	(30,739		)	(44,297		)
Income before property dispositions	26,455			38,578			45,483
Gain on property dispositions	95,384			12,426			60,582
Net income	$	121,839		$	51,004		$	106,065

On November 7, 2013, the Company entered into an Agreement of Sale and Purchase pursuant to which the Company agreed to sell a real estate portfolio which included the Company’s Jacksonville, Florida portfolio in its entirety, all of the office properties in Maryland, Southern New Jersey and the Fort Washington suburb of Philadelphia and flex properties in Minnesota for a purchase price of $697.3 million. The properties consisted of 97 buildings containing an aggregate of 6.6 million square feet. On December 24, 2013, the Company closed on the first of two planned settlements under this agreement. The proceeds from the first settlement were $367.7 million and included 49 properties totaling approximately 4.0 million square feet of space and 140 acres of land. The remaining settlement consisted of 47 properties and 19 acres totaling 2.6 million square feet in the Company's Industrial-Other reportable segment and one property totaling 37,000 square feet in the Company's Southeastern PA reportable segment. These properties and land parcels were considered held for sale and were sold subsequent to December 31, 2013 for proceeds of $329.6 million.

Interest expense is allocated to discontinued operations. The allocation of interest expense to discontinued operations was based on the ratio of net assets sold and held for sale to the sum of total net assets plus consolidated debt.

Asset Impairment

During the years ended December 31, 2013, 2012 and 2011, the Company recognized impairment losses of $1.9 million, $6.9 million and $7.8 million, respectively. The impairment losses are for operating properties or land parcels and were in the reportable segments and for the amounts as indicated below (amounts in thousands):



		Year Ended December 31,
	Reportable Segment	2013		2012				2011
Industrial -	Chicago/Milwaukee	—		514				5,985
	Houston	—		—				6
	Carolinas	—		36				670
	Other	—		29				538
Industrial/Office -	South Florida	—		(51		)	⁽¹⁾	160
	Richmond/Hampton Roads	—		27				501
	United Kingdom	784		4,597				—
	Other	1,120		—				(30		)	⁽¹⁾
Office -	Southeastern PA	—		1,699				—
	Total	$	1,904	$	6,851			$	7,830

(1) Represents recovery of estimated sales costs on properties sold.

For the year ended December 31, 2013, $872,000 in impairments related to properties sold were included in the caption discontinued operations in the Company's consolidated statements of comprehensive income, $248,000 in impairments related to land parcels sold were included in the caption gain on property dispositions in the Company's consolidated statements of comprehensive income and $784,000 in impairments were included in the caption equity in earnings (loss) of unconsolidated joint ventures in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2012, $2.3 million in impairments related to properties sold were included in the caption discontinued operations in the Company's consolidated statements of comprehensive income and $4.6 million in impairment was included in the caption equity in earnings (loss) of unconsolidated joint ventures in the Company's consolidated statements of comprehensive income. For the year ended December 31, 2011, $7.9 million in impairment related to properties sold was included in the caption discontinued operations in the Company's consolidated statements of comprehensive income. The Company determined these impairments through a comparison of the aggregate future cash flows (including quoted offer prices, a Level 1 input according to the fair value hierarchy established in ASC 820) to be generated by the properties to the carrying value of the properties. The Company has evaluated each of the properties and land held for development and has determined that there are no additional valuation adjustments necessary at December 31, 2013.